Jakarta – Deputy Finance Minister Bambang Brodjonegoro says that an increase in the provincial minimum wage will not affect inflation in 2014. Bambang said that inflation in 2014 would remain at 5.5 percent regardless of the hike.

Bambang added that inflation would only rise due to two factors – administered price policies, such as the ones regarding subsidized fuel and logistics prices. "We can still manage inflation if those two factors remain unaffected," Bambang said as quoted by Kontan.co.id.

Bambang said that raising the provincial minimum wage would in fact contribute positively to the economy as it would boost consumption.